Which One of the Following Items Would Be a "Debit

question 7

Multiple Choice

Which one of the following items would be a "debit" in a country's balance-of-payments account?

• A) exports of merchandise
• B) an increase in a domestic citizen's bank account in a foreign bank
• C) increased holdings of domestic bonds by foreigners
• D) exports of services

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Definitions:

Operating Cash Flows

The cash generated from the normal operations of a business, excluding cash movements from investing and financing activities.

Depreciated

Refers to the decrease in value of an asset over time due to wear and tear, age, or obsolescence.

Salvaged

The recovery of value from an asset that has been damaged, discarded, or no longer useful in its original form.

Depreciation Tax Shield

A reduction in taxable income resulting from the allowance for depreciation expenses, which ultimately decreases tax liabilities.